Examining Lincoln Electric's Story Amid Changes in Automation and Market Sentiment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 01 2025
0mins
Should l Buy LECO?
Source: Yahoo Finance
Analyst Sentiment: Lincoln Electric Holdings' fair value estimate has increased to $260.60, with analysts expressing confidence due to improved operational execution and growing global automation demand. Barclays and Roth Capital have raised their price targets, highlighting the company's strong position in the electrification trend.
Financial Developments: The company completed a buyback of over 216,000 shares and announced a 5.3% increase in its quarterly cash dividend to $0.79 per share, reflecting a commitment to returning value to shareholders.
Growth Strategy: Lincoln Electric is pursuing acquisitions and investments to expand its operations, with its automation business nearing the $1 billion revenue milestone, indicating a focus on growth in both domestic and international markets.
Market Dynamics: While overall analyst sentiment is positive, concerns about valuation and near-term risks in the machinery sector persist, suggesting a cautious outlook amidst shifting market expectations.
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Analyst Views on LECO
Wall Street analysts forecast LECO stock price to fall
7 Analyst Rating
4 Buy
2 Hold
1 Sell
Moderate Buy
Current: 296.140
Low
252.00
Averages
269.25
High
285.00
Current: 296.140
Low
252.00
Averages
269.25
High
285.00
About LECO
Lincoln Electric Holdings, Inc. is a manufacturer of welding, cutting and brazing products. The Company’s segments include Americas Welding, International Welding, and the Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia, and Australia. The Harris Products Group includes the Company’s global oxyfuel cutting, soldering and brazing businesses and its retail business in the United States. Its products include arc welding, brazing and soldering filler metals (consumables), arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, specialty gas regulators, and education solutions; and a comprehensive portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lincoln Electric Reports Mixed Q4 Results with Analyst Upgrades
- Earnings Beat: Lincoln Electric reported Q4 earnings of $2.65 per share, surpassing the analyst consensus estimate of $2.54, indicating strong profitability despite mixed overall sales performance.
- Sales Miss: The company posted quarterly sales of $1.079 billion, falling short of the analyst consensus estimate of $1.099 billion, reflecting potential fluctuations in market demand that may have impacted revenue growth.
- Stock Price Increase: Lincoln Electric shares rose 0.3% to $296.95 on Friday, suggesting market recognition of the company's profitability, even as sales figures did not meet expectations.
- Analyst Target Adjustments: Keybanc analyst Steve Barger maintained an Overweight rating and raised the price target from $280 to $340, while Stifel analyst Nathan Jones kept a Hold rating and increased the target from $253 to $300, indicating analysts' confidence in the company's future performance.
See More
Lincoln Electric Reports Record Q4 2025 Performance with New RISE Strategy
- Performance Growth: Lincoln Electric reported a 6% increase in sales to $4.2 billion for 2025, with CEO Steven Hedlund attributing this growth primarily to acquisitions and price increases, reflecting the company's strong market performance.
- Cost Management Success: The company achieved $31 million in permanent savings through its savings programs, with CFO Gabriel Bruno noting a 5.5% increase in Q4 sales to $1.079 billion, despite a 6.4% decline in volumes, indicating solid cash flow generation.
- New Strategy Launch: Management unveiled the RISE strategy aimed at enhancing global organizational efficiency and agility through center-led functions, projecting a high single-digit to low double-digit sales growth rate by 2030.
- Future Outlook: The company anticipates a mid-single-digit sales growth rate for 2026, emphasizing that automation and acquisitions will be key growth drivers while maintaining strict capital expenditure management.
See More
Lincoln Electric Reports Decline in Net Income Despite Sales Growth
- Net Income Decline: Lincoln Electric reported a net income of $136.022 million for the three months ending December 31, 2025, translating to $2.45 per share, down from $140.229 million or $2.47 per share a year earlier, primarily due to increased income tax and interest expenses.
- Sales Growth: The company achieved sales of $1.078 billion, up from $1.022 billion in the previous year, reflecting benefits from acquisitions and favorable foreign exchange rates, indicating strong market demand.
- Operating Income Increase: Operating income rose to $184.340 million compared to $177.017 million in 2024, showcasing the company's ability to enhance profitability through operational efficiencies.
- Rising Tax and Interest Expenses: Income tax expenses increased to $36.639 million from $26.824 million last year, while interest expenses climbed to $13.167 million from $11.372 million, which negatively impacted overall profitability.
See More
Lincoln Electric Q4 Earnings Beat Expectations
- Earnings Beat: Lincoln Electric reported a Q4 non-GAAP EPS of $2.65, exceeding expectations by $0.11, indicating the company's consistent profitability amidst market fluctuations.
- Revenue Miss: The revenue of $1.08 billion, while up 5.9% year-over-year, fell short of expectations by $20 million, highlighting potential weaknesses in market demand and increased competitive pressures.
- Negative Stock Reaction: Following the earnings report, Lincoln Electric's shares dropped by 1.5%, reflecting investor disappointment over the revenue miss, which could dampen short-term market confidence.
- Rating Downgrade Impact: Analysts downgraded Lincoln Electric's rating, suggesting that while the fundamentals remain strong, the lack of compelling growth may lead investors to reassess their strategies regarding the stock.
See More
Lincoln Electric Set to Announce Q4 Earnings on February 12
- Earnings Announcement Date: Lincoln Electric is set to release its Q4 earnings on February 12 before the market opens, with a consensus EPS estimate of $2.54, reflecting a 1.2% year-over-year decline, which may impact investor sentiment.
- Revenue Growth Expectations: The revenue estimate for the quarter stands at $1.1 billion, representing a 7.6% year-over-year increase, indicating the company's stable growth potential in the market despite the slight EPS decline.
- Historical Performance: Over the past two years, Lincoln Electric has beaten EPS estimates 88% of the time and revenue estimates 75% of the time, showcasing strong profitability that may attract investor interest.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen four upward revisions and three downward revisions, while revenue estimates have experienced five upward revisions with no downward adjustments, reflecting optimistic market expectations for the company's future performance.
See More
Lincoln Electric to Speak at Barclays Conference
- Executive Speaking Engagement: Lincoln Electric's Chairman and CEO Steve Hedlund, along with CFO Gabriel Bruno, will present at the Barclays 43rd Annual Industrial Select Conference in Miami on February 17, 2026, at 10:25 a.m. ET, highlighting the company's leadership in welding solutions.
- Webcast Details: The presentation will be webcast, allowing investors to access it via Lincoln Electric's Investor Relations website, ensuring that global investors can stay updated on the company's latest developments in real-time.
- Company Overview: Lincoln Electric is the world leader in the design and manufacturing of advanced arc welding solutions, with 71 manufacturing and automation system integration locations across 20 countries, serving customers in over 160 countries worldwide.
- Industry Leadership: Recognized as the Welding Expert™, Lincoln Electric's expertise in materials science, software development, and automation engineering enhances customers' fabrication capabilities, bolstering its competitive position in the global market.
See More
Lincoln Electric Reports Mixed Q4 Results with Analyst Upgrades
- Earnings Beat: Lincoln Electric reported Q4 earnings of $2.65 per share, surpassing the analyst consensus estimate of $2.54, indicating strong profitability despite mixed overall sales performance.
- Sales Miss: The company posted quarterly sales of $1.079 billion, falling short of the analyst consensus estimate of $1.099 billion, reflecting potential fluctuations in market demand that may have impacted revenue growth.
- Stock Price Increase: Lincoln Electric shares rose 0.3% to $296.95 on Friday, suggesting market recognition of the company's profitability, even as sales figures did not meet expectations.
- Analyst Target Adjustments: Keybanc analyst Steve Barger maintained an Overweight rating and raised the price target from $280 to $340, while Stifel analyst Nathan Jones kept a Hold rating and increased the target from $253 to $300, indicating analysts' confidence in the company's future performance.
See More
Lincoln Electric Reports Record Q4 2025 Performance with New RISE Strategy
- Performance Growth: Lincoln Electric reported a 6% increase in sales to $4.2 billion for 2025, with CEO Steven Hedlund attributing this growth primarily to acquisitions and price increases, reflecting the company's strong market performance.
- Cost Management Success: The company achieved $31 million in permanent savings through its savings programs, with CFO Gabriel Bruno noting a 5.5% increase in Q4 sales to $1.079 billion, despite a 6.4% decline in volumes, indicating solid cash flow generation.
- New Strategy Launch: Management unveiled the RISE strategy aimed at enhancing global organizational efficiency and agility through center-led functions, projecting a high single-digit to low double-digit sales growth rate by 2030.
- Future Outlook: The company anticipates a mid-single-digit sales growth rate for 2026, emphasizing that automation and acquisitions will be key growth drivers while maintaining strict capital expenditure management.
See More
Lincoln Electric Reports Decline in Net Income Despite Sales Growth
- Net Income Decline: Lincoln Electric reported a net income of $136.022 million for the three months ending December 31, 2025, translating to $2.45 per share, down from $140.229 million or $2.47 per share a year earlier, primarily due to increased income tax and interest expenses.
- Sales Growth: The company achieved sales of $1.078 billion, up from $1.022 billion in the previous year, reflecting benefits from acquisitions and favorable foreign exchange rates, indicating strong market demand.
- Operating Income Increase: Operating income rose to $184.340 million compared to $177.017 million in 2024, showcasing the company's ability to enhance profitability through operational efficiencies.
- Rising Tax and Interest Expenses: Income tax expenses increased to $36.639 million from $26.824 million last year, while interest expenses climbed to $13.167 million from $11.372 million, which negatively impacted overall profitability.
See More
Lincoln Electric Q4 Earnings Beat Expectations
- Earnings Beat: Lincoln Electric reported a Q4 non-GAAP EPS of $2.65, exceeding expectations by $0.11, indicating the company's consistent profitability amidst market fluctuations.
- Revenue Miss: The revenue of $1.08 billion, while up 5.9% year-over-year, fell short of expectations by $20 million, highlighting potential weaknesses in market demand and increased competitive pressures.
- Negative Stock Reaction: Following the earnings report, Lincoln Electric's shares dropped by 1.5%, reflecting investor disappointment over the revenue miss, which could dampen short-term market confidence.
- Rating Downgrade Impact: Analysts downgraded Lincoln Electric's rating, suggesting that while the fundamentals remain strong, the lack of compelling growth may lead investors to reassess their strategies regarding the stock.
See More
Lincoln Electric Set to Announce Q4 Earnings on February 12
- Earnings Announcement Date: Lincoln Electric is set to release its Q4 earnings on February 12 before the market opens, with a consensus EPS estimate of $2.54, reflecting a 1.2% year-over-year decline, which may impact investor sentiment.
- Revenue Growth Expectations: The revenue estimate for the quarter stands at $1.1 billion, representing a 7.6% year-over-year increase, indicating the company's stable growth potential in the market despite the slight EPS decline.
- Historical Performance: Over the past two years, Lincoln Electric has beaten EPS estimates 88% of the time and revenue estimates 75% of the time, showcasing strong profitability that may attract investor interest.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen four upward revisions and three downward revisions, while revenue estimates have experienced five upward revisions with no downward adjustments, reflecting optimistic market expectations for the company's future performance.
See More
Lincoln Electric to Speak at Barclays Conference
- Executive Speaking Engagement: Lincoln Electric's Chairman and CEO Steve Hedlund, along with CFO Gabriel Bruno, will present at the Barclays 43rd Annual Industrial Select Conference in Miami on February 17, 2026, at 10:25 a.m. ET, highlighting the company's leadership in welding solutions.
- Webcast Details: The presentation will be webcast, allowing investors to access it via Lincoln Electric's Investor Relations website, ensuring that global investors can stay updated on the company's latest developments in real-time.
- Company Overview: Lincoln Electric is the world leader in the design and manufacturing of advanced arc welding solutions, with 71 manufacturing and automation system integration locations across 20 countries, serving customers in over 160 countries worldwide.
- Industry Leadership: Recognized as the Welding Expert™, Lincoln Electric's expertise in materials science, software development, and automation engineering enhances customers' fabrication capabilities, bolstering its competitive position in the global market.
See More
